Learn information about firms through word-of-mouth

Assignment Help Financial Management

Reference no: EM132030420

Consider a stock market where investors learn information about firms through word-of-mouth. That is, one investor learns some news, then tells some friends, who then tell some other friends, etc. Would you expect such a stock market to exhibit more or less momentum than an alternative stock market where investors tend to learn news about firms from national television broadcasts?

Reference no: EM132030420

Questions Cloud

Discuss ways to measure-manage and mitigate the risk : Discuss ways to measure, manage and mitigate the Risk. Again, you should refer to the Wells Fargo disclosure.

Recommend to the chief executive officer of whirlybird : What course of action do you recommend to the Chief Executive Officer (CEO) of Whirlybird?

Fixed assets are required to support this growth in sales : How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity.

What is the future value of these cash flows : What is the PV (present value) today of $1,000 per year, If the discount rate, r, is 10%, what is the FV (future value) of these CFs (cash flows) in Year 4?

Learn information about firms through word-of-mouth : Consider a stock market where investors learn information about firms through word-of-mouth.

Calculate the modified internal rate of return : How to calculate the modified internal rate of return

Four year project to improve its production efficiency : Geary Machine Shop is considering a 4-year project to improve its production efficiency.

What is aftertax salvage value in year three : The tax rate is 0.36 and the required return on the project is 0.12. What is the aftertax salvage value (SVNOT) in year 3?

Franks is looking at new sausage system : Dog Up! Franks is looking at a new sausage system with an installed cost of $629000.

User Account

All Pages